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Monday, 27 March 04:39 (GMT -05:00)



Business And Politics News

US Banks Passed Stress Tests


 

US bankin gnews. Stress tests for banks may be called one of the key moments of this week. On Tuesday FRS announced the results of stress tests for banks. Reports show that the majority of large-scale US banks are able to fulfill their obligations in extremely non-favourable economic circumstances. The situation may then develop in the following way:
  • Unemployment growth to 13%
  • Price drop by 50%
  • Drop of housing price by 21%

In such a case, the loss of 19 largest banks would amount to 534 bln. dollars. Despite considerable drop of predicted capital, 15 out of 19 holding banking companies will keep their capital four times higher than its normative value.

According to Aleksei Afanasiev, the head of the Department of Portfolio Investments of Masterforex-V Academy, last week’s macroeconomic data was mostly positive:
1. Retail sales rose by 1.1% in February, taking into consideration seasonal fluctuations. In comparison to February 2011, sales have risen by 6.5%. January sales have risen from 0.4% to 0.6%.

 

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2. Industrial production remained the same. Capacity ratio is falling. It has dropped by 78.7% or by 1.6 points from the average since 1972. Its value is 18.3% lower than before crisis. Capacity ratio in January has been lowered from 78.5% to 78.8%. Industrial output did not change in February. Market consensus was slightly worse than expected.
 

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3. Reports of Philadelphia FRS about national production volume slow minor increase in January. Current activity index in March amounted to 12.5 and showed the increase by 2.3 basic points, which is the maximal point since April 2011. General business index remained almost the same in March and amounted to 20.2.

4. Weekly unemployment claims have dropped to 351 000. The four-week moving average is close to the lowest point since the beginning of 2008.

 

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5. Consumer sentiment index dropped to 74.3 in March from 75.3 in February, which is lower than market consensus. Consumer’s general sentiment is rather weak and does not show certain signs of recovery. Small business index slightly rose in February. It has risen form 93.9 to 94.3, which is the 6th rise in a row. However, the index remains at a rather low point due to slow economic growth.

Rally, which started since the beginning of the year, is getting weaker and casts pressure on investors’ psychology. We are currently observing overbought market, and there remains the only question: “will the future correction amount to 3-5% or 10-15%, or something else?”. We recommend redistributing the portfolio, for we believe that aggressive buying at current points are inappropriate.

 

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Soros, Rockefeller and Other Billionaires Ask U.S. Government to Raise Taxes for Them

The State of New York’s richest citizens – including some of the world’s richest families such as Soros, Rockefeller, Disney and others – have signed a petition to ask the local authorities to raise the taxes for the super-rich.

 

 
The extra money allocated as the result of those tax hikes are offered to be spend on schools, infrastructure, support for the homeless and other important things. The billionaires say that it’s time to invest in the long-term economic attractiveness of New York.
Publication date: 25 March 06:02 AM

Polish Defense Minister Calls Donald Tusk a Traitor

Not so long ago, Poland found itself in the middle of another political scandal. The thing is that the Polish Minister of Defense accused President of the European Council Donald Tusk in a diplomatic betrayal. For those of you who don’t know, Donald Tusk used to be the Prime Minister of Poland.
 
To be more specific, Donald Tusk was allegedly cooperating with Vladimir Putin when he was the Prime Minister of Poland. They Defense Minister claims that the aim of this cooperation was to undermine Poland’s national interests after the Polish President’s airplane crashed in Russia in 2010. Apart from the President, there were 95 people on board, including a lot of high-ranking Polish politicians. Unfortunately, nobody survived the crash.
 
Publication date: 24 March 09:48 AM

Candidate Macron Is Against Tighter Relations with Russia

Emmanuel Macron is a former French Minister of Economy and one of the candidates of the post of the President of France.  He thinks that France should be moving forward to tighter relations with the Russian Federation.
 

 

During the pre-election debates broadcast by TF1, Emmanuel Macron showed that he wouldn’t make friends with Moscow if he elected President of France. He thinks that France needs independence and tighter cooperation with fellow EU countries. He wants to make France stronger and more independent based on responsibility and real European policies.
 
Publication date: 24 March 12:49 AM

Russia's Become More Influential in the Middle East, Stratfor Says

According to Stratfor, a US-based private analytic company, Russia has really become more influential in the Middle East.
 
According to the recent report released by Stratfor the other day, since the Russian federation has deployed its troops in Syria, it has been increasing its role in the entire region. Apart from helping Iran (shipping weapons) and Egypt (investing through Russian tourists), Russia has been actively participating in several regional disputes at the same time.
Publication date: 23 March 09:32 AM

Evgeny Kiselev on 3 Years of Russia's Crimean Shame

For those of you who don’t know, a couple of days ago, Russia celebrated the 3rd anniversary of getting back the Crimea, which was essentially annexation. Evgeny Kiselev, a famous Russian journalist who later got the Ukrainian citizenship, decided to comment on the results of Russia’s annexation of the Crimea that took place 3 years ago.
 
Publication date: 23 March 04:27 AM

Europe Looks Helpless Under the Treat Coming from Russia, Experts Say

According to several experts, including Mikhail Samous, a military expert from Ukraine, at this point the entire Europe looks helpless when it comes to any possible threat coming from Russia.
 

 

To be more specific, Mikhail and his fellow experts assume that Europe has still failed to come up with efficient ways of resisting the kind of a hybrid war Russia has been waging in Ukraine, and even some other places around the world.

Publication date: 22 March 08:43 AM

Trump's in Search of Peaceful Conflict Resolution in Donbass

Donald Trump met with Angela Merkel. There are reported to have spent a lot of time discussing the situation in Ukraine.
 

 

Having talked to Angela Merkel, Donald Trump agreed with the idea of peaceful resolution of the Donbass conflict. However, he also gave everyone to understand that some other scenarios are possible as well. He said that ideally they are looking for the ways and means to resolve the conflict in a peaceful way.
Publication date: 22 March 02:54 AM

Queen Stats Brexit

From now on, the British government is allowed to start the so-called Brexit, i.e. the process of quitting the European Union for good. The thing is that the previously approved document aimed at starting the Brexit procedure is now signed by Queen Elizabeth II. This means that the British government has got a green light to implement the people’s will expressed during the corresponding referendum on June 23rd, 2016. From now on, there is no stopping Theresa may from starting the Brexit.

Publication date: 20 March 11:28 AM

It’s Necessary to Prevent Russia from Influencing the Balkans, Theresa May Says

According to British Prime Minister Theresa May, the Balkan states are in jeopardy. This threat is coming from Russia. That’s why she thinks that European leaders should establish tighter cooperation with those Balkan states that are not EU members to avoid letting Russia spread their influence over those states.

Publication date: 20 March 06:12 AM

Angela Merkel's Gonna Shed Some Light on the Situation in Ukraine for Donald Trump

Several Western online sources report that Angela Merkel is willing to tell Donald Trump all the truth about what’s really going on in Ukraine. The thing is that German observers assume that Donald Trump knows relatively little about the situation in Ukraine in general and the East of Ukraine in particular. That’s why they assume that their Chancellor seems to think that it’s now here responsibility as a European leader to shed some light on the situation and help the U.S. President understand the real state of affairs in the region, especially in the Crimea and Donbass.

Publication date: 20 March 05:35 AM